Guy Maddin proposed a 40-50 minute short, titled
Gimli Saga, loosely based on the Icelandic settlement of Gimli. In 1987, he learned that the
Winnipeg Film Group was offering a $20,000 film grant. The application deadline was the next day and Maddin combined some ideas into three to four pages. He lost the grant competition, but submitted the idea to the
Manitoba Arts Council. He asked for $9,000, but the council gave him $20,000. Maddin's final screenplay was eight pages long. The film had a budget of $22,000 ( and executive producer Greg Klymkiw raised $40,000 from the
Winnipeg Film Group to market the film. Maddin stated that the official budget figure was inaccurate and "could have been as high as $30,000, or as low as $14,000". Filming occurred over one year from 1987 to 1988. Some outdoor scenes were shot in Gimli and most of the interior scenes were filmed in Maddin's aunt house, a former beauty salon. Several actors in the film were amateurs who were not paid. Maddin hired a cinematographer, but he refused to come after the first day of shooting. He instead taught Maddin how to use the 16mm
Bolex camera. Maddin hid powerlines that were in frame by applying vaseline onto the lens. The film uses music from
Zero for Conduct,
Vess Ossman, and Icelandic folk music from the collection of Maddin's aunt. Greg Klymkiw, who met Maddin while they were studying at the
University of Winnipeg, became the film's executive producer after seeing its
rough cut. Klymkiw convinced Maddin to make the project feature-length. Steven W. Snyder, a film professor at the
University of Manitoba, was listed as a producer in the credits for providing meals to Maddin and allowing him to audit his course without paying tuition. ==Release==